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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your Class 11 knowledge and support exam preparation. Choose a topic below to get started.
| 1401. |
If Depreciation reduces, profits and Value of fixed assets and thus, the capital of the owner, why do businesses charge Depreciation? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/financial-988642" style="font-weight:bold;" target="_blank" title="Click to know more about FINANCIAL">FINANCIAL</a> Statements <a href="https://interviewquestions.tuteehub.com/tag/must-2185568" style="font-weight:bold;" target="_blank" title="Click to know more about MUST">MUST</a> show a true and fair view of the financial performace and <a href="https://interviewquestions.tuteehub.com/tag/also-373387" style="font-weight:bold;" target="_blank" title="Click to know more about ALSO">ALSO</a> financial position of the business. If Depreciation is not <a href="https://interviewquestions.tuteehub.com/tag/charged-7263949" style="font-weight:bold;" target="_blank" title="Click to know more about CHARGED">CHARGED</a>, both <a href="https://interviewquestions.tuteehub.com/tag/profits-1168748" style="font-weight:bold;" target="_blank" title="Click to know more about PROFITS">PROFITS</a> and fixed assets would be stated at inflated amounts. This will mislead the users of Financial Statements.</body></html> | |
| 1402. |
If Depreciation reduces profit, reduces Book value of assets and also reduces capital of the proprietor, then why do enterprises provide Depreciation ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/depreciation-948712" style="font-weight:bold;" target="_blank" title="Click to know more about DEPRECIATION">DEPRECIATION</a>, is allocation of cost of fixed assets in a systematic manner over their estimated useful life. It is thus, a cost. Financial Statements must be show true and fair view of the financial <a href="https://interviewquestions.tuteehub.com/tag/performance-11671" style="font-weight:bold;" target="_blank" title="Click to know more about PERFORMANCE">PERFORMANCE</a> and position of the business. If depreciation is not <a href="https://interviewquestions.tuteehub.com/tag/provided-2960341" style="font-weight:bold;" target="_blank" title="Click to know more about PROVIDED">PROVIDED</a>, both fixed asset and profit will be shown at higher amounts.</body></html> | |
| 1403. |
If debit side of a Trading Account is bigger, does it mean the enterprise has earned profit or incurred a loss? Why? |
| Answer» <html><body><p></p>Solution :It <a href="https://interviewquestions.tuteehub.com/tag/mean-1091459" style="font-weight:bold;" target="_blank" title="Click to know more about MEAN">MEAN</a> the <a href="https://interviewquestions.tuteehub.com/tag/business-21797" style="font-weight:bold;" target="_blank" title="Click to know more about BUSINESS">BUSINESS</a> has incurred loss as revenues are credited <a href="https://interviewquestions.tuteehub.com/tag/whereas-2326610" style="font-weight:bold;" target="_blank" title="Click to know more about WHEREAS">WHEREAS</a> <a href="https://interviewquestions.tuteehub.com/tag/expenses-980258" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENSES">EXPENSES</a> are <a href="https://interviewquestions.tuteehub.com/tag/debited-2043748" style="font-weight:bold;" target="_blank" title="Click to know more about DEBITED">DEBITED</a>.</body></html> | |
| 1404. |
If debit side of Profit and Loss Account is bigger than credit side, does it mean net profit or net loss ? Why? |
| Answer» <html><body><p></p>Solution :It means <a href="https://interviewquestions.tuteehub.com/tag/net-5194" style="font-weight:bold;" target="_blank" title="Click to know more about NET">NET</a> loss. It is so because all incomes and <a href="https://interviewquestions.tuteehub.com/tag/gains-1003231" style="font-weight:bold;" target="_blank" title="Click to know more about GAINS">GAINS</a> are credited while all expenses and losses are debited. If total of debit side (<a href="https://interviewquestions.tuteehub.com/tag/expense-980253" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENSE">EXPENSE</a>) is more than the total of credit side (<a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a>), it will <a href="https://interviewquestions.tuteehub.com/tag/result-1187343" style="font-weight:bold;" target="_blank" title="Click to know more about RESULT">RESULT</a> in loss</body></html> | |
| 1405. |
If credit side of a Trading Account is bigger than the debit side, does it mean the enterprise has incurred loss or earned profit ? Why? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :It means the business has earned profit as revenues are credited whereas expenses are <a href="https://interviewquestions.tuteehub.com/tag/debited-2043748" style="font-weight:bold;" target="_blank" title="Click to know more about DEBITED">DEBITED</a>.</body></html> | |
| 1406. |
If credit side of Profit and Loss Account is bigger than the debit side, does it mean net loss or net profit ? Why? |
| Answer» <html><body><p></p>Solution :It means net profit. If is so because all <a href="https://interviewquestions.tuteehub.com/tag/incomes-1040086" style="font-weight:bold;" target="_blank" title="Click to know more about INCOMES">INCOMES</a> and gains are credited while all expenses and losses are <a href="https://interviewquestions.tuteehub.com/tag/debited-2043748" style="font-weight:bold;" target="_blank" title="Click to know more about DEBITED">DEBITED</a>. If total of credit <a href="https://interviewquestions.tuteehub.com/tag/side-1206832" style="font-weight:bold;" target="_blank" title="Click to know more about SIDE">SIDE</a> (income) is more than the total of debit side (expense), it will <a href="https://interviewquestions.tuteehub.com/tag/result-1187343" style="font-weight:bold;" target="_blank" title="Click to know more about RESULT">RESULT</a> in profit</body></html> | |
| 1407. |
If Closing Stock is given outside the Trial Balance, where is it shown in the Finanical Statements or Final Accounts ? |
| Answer» <html><body><p></p>Solution :Closing Stock given <a href="https://interviewquestions.tuteehub.com/tag/outside-1143075" style="font-weight:bold;" target="_blank" title="Click to know more about OUTSIDE">OUTSIDE</a> the Trial Balance is <a href="https://interviewquestions.tuteehub.com/tag/shown-1206565" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWN">SHOWN</a> on the <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> side of the Trading Account and on the <a href="https://interviewquestions.tuteehub.com/tag/assets-885948" style="font-weight:bold;" target="_blank" title="Click to know more about ASSETS">ASSETS</a> side of the Balance Sheet under the main head <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> Assets.</body></html> | |
| 1408. |
Ifcapitalof a business is ₹1,40,000 and liabilities are of ₹80,000, calcluate the total assets of the business. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :TotalAssest ₹2,20,000</body></html> | |
| 1409. |
If Closing Stock appears in the Trial Balance , it means |
| Answer» <html><body><p>pruchases are <a href="https://interviewquestions.tuteehub.com/tag/adjusted-7661905" style="font-weight:bold;" target="_blank" title="Click to know more about ADJUSTED">ADJUSTED</a> against opening and closing <a href="https://interviewquestions.tuteehub.com/tag/stocks-1227925" style="font-weight:bold;" target="_blank" title="Click to know more about STOCKS">STOCKS</a>. <br/><a href="https://interviewquestions.tuteehub.com/tag/purchase-1172709" style="font-weight:bold;" target="_blank" title="Click to know more about PURCHASE">PURCHASE</a> are adjusted against closing stock <br/>Both (a) and (b)<br/><a href="https://interviewquestions.tuteehub.com/tag/none-580659" style="font-weight:bold;" target="_blank" title="Click to know more about NONE">NONE</a> of the above.</p>Solution :pruchases are adjusted against opening and closing stocks.</body></html> | |
| 1410. |
Ifcapitalof a business is ₹1,40,000 and liabilities are of ₹80,000, calcluate the total assets of the business. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :TotalAssest ₹2,20,000</body></html> | |
| 1411. |
If both debit and the credit aspect of a transaction are recorded in the cash book itself , it is called |
| Answer» <html><body><p>an <a href="https://interviewquestions.tuteehub.com/tag/opening-1136658" style="font-weight:bold;" target="_blank" title="Click to know more about OPENING">OPENING</a> <a href="https://interviewquestions.tuteehub.com/tag/entry-972873" style="font-weight:bold;" target="_blank" title="Click to know more about ENTRY">ENTRY</a> <br/>a <a href="https://interviewquestions.tuteehub.com/tag/compound-926863" style="font-weight:bold;" target="_blank" title="Click to know more about COMPOUND">COMPOUND</a> entry <br/>a tranfer entry <br/>a <a href="https://interviewquestions.tuteehub.com/tag/contra-932385" style="font-weight:bold;" target="_blank" title="Click to know more about CONTRA">CONTRA</a> entry </p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :a contra entry</body></html> | |
| 1412. |
If Capital and Revenue Expenditure are not distinguished |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/net-5194" style="font-weight:bold;" target="_blank" title="Click to know more about NET">NET</a> <a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a> will not be correct<br/>financial <a href="https://interviewquestions.tuteehub.com/tag/position-1159826" style="font-weight:bold;" target="_blank" title="Click to know more about POSITION">POSITION</a> will not be correct<br/>both (a) and (<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>)<br/><a href="https://interviewquestions.tuteehub.com/tag/none-580659" style="font-weight:bold;" target="_blank" title="Click to know more about NONE">NONE</a> of these</p>Solution :both (a) and (b)</body></html> | |
| 1413. |
If balance in the bank statement shows ₹ 3,000 (Dr.) and there are deposits of ₹ 800not yetcredited and unpresented cheques totalling ₹ 500, the balance in the Cash Book should be |
| Answer» <html><body><p>₹ 3,300 (<a href="https://interviewquestions.tuteehub.com/tag/cr-427229" style="font-weight:bold;" target="_blank" title="Click to know more about CR">CR</a>.) <br/>₹ 2,700 (Cr.) <br/>₹ 4,300 (Cr.) <br/>₹1,700 (<a href="https://interviewquestions.tuteehub.com/tag/dr-959219" style="font-weight:bold;" target="_blank" title="Click to know more about DR">DR</a>.)</p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :₹ 2,700 (Cr.)</body></html> | |
| 1414. |
If both Adjusted Purchases and Closing Stock are given in the Trial Balance, where are the two accounts shown in the Final Accounts ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/adjusted-7661905" style="font-weight:bold;" target="_blank" title="Click to know more about ADJUSTED">ADJUSTED</a> Purchases are shown in the Trading <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> on the debit side. Closing <a href="https://interviewquestions.tuteehub.com/tag/stock-1227804" style="font-weight:bold;" target="_blank" title="Click to know more about STOCK">STOCK</a> is shown on the assets side of the <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> Sheet under main head <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> Assets.</body></html> | |
| 1415. |
If amount of any known liability is not known, it is accounted in the Books of Account as |
| Answer» <html><body><p> a Liability<br/>a <a href="https://interviewquestions.tuteehub.com/tag/provision-607840" style="font-weight:bold;" target="_blank" title="Click to know more about PROVISION">PROVISION</a><br/>a reserve<br/>None of these </p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :a provision</body></html> | |
| 1416. |
If amount of any known liability is known, it is accounted in the Books of Account as |
| Answer» <html><body><p> a <a href="https://interviewquestions.tuteehub.com/tag/liability-541457" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITY">LIABILITY</a><br/>a provision<br/>a reserve<br/>None of these </p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : a Liability</body></html> | |
| 1417. |
If a transactions has theeffect of decreasingan asset, is thedecrease recorded as a debit or as a credit? If thetransaction has the effect of decreasing a liability , is thedecrease recorded as a debit or as a credit ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Decrease in Asset will be <a href="https://interviewquestions.tuteehub.com/tag/recorded-2240050" style="font-weight:bold;" target="_blank" title="Click to know more about RECORDED">RECORDED</a> on credit <a href="https://interviewquestions.tuteehub.com/tag/side-1206832" style="font-weight:bold;" target="_blank" title="Click to know more about SIDE">SIDE</a>. <br/> Decrease in <a href="https://interviewquestions.tuteehub.com/tag/liability-541457" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITY">LIABILITY</a> will be recorded on debit side.]</body></html> | |
| 1418. |
If 'Adjusted Purchases' and 'Closing Stock' are given in the Trial Balance, will you transfer 'Closing Stock' to Trading Account? Given reason |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :No. <a href="https://interviewquestions.tuteehub.com/tag/closing-919708" style="font-weight:bold;" target="_blank" title="Click to know more about CLOSING">CLOSING</a> <a href="https://interviewquestions.tuteehub.com/tag/stock-1227804" style="font-weight:bold;" target="_blank" title="Click to know more about STOCK">STOCK</a> will not be transferred to Trading Account because it already stands credited to Trading Account as Adjusted Purchases mean <a href="https://interviewquestions.tuteehub.com/tag/opening-1136658" style="font-weight:bold;" target="_blank" title="Click to know more about OPENING">OPENING</a> Stock + Purchases (Net) - Closing Stock</body></html> | |
| 1419. |
If accounting information is based on facts and it is verifiable by documents ithas the quality of ……… |
| Answer» <html><body><p>Relevance<br/>Reliability<br/>Understandability<br/>Comparability</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
| 1420. |
If adequate maintenance expenditure is incurred, depreciation need not be charged. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/f-455800" style="font-weight:bold;" target="_blank" title="Click to know more about F">F</a></body></html> | |
| 1421. |
If a Trial Balance does not agree, the difference must be entered in (i) the Profit and Loss Account, (ii) a Suspense Account, (iii) a Nominal Account and (iv) the Capital Account. Give reasons. |
| Answer» <html><body><p></p>Solution :(ii) A Suspense Account. Because the difference in a Trial <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> when <a href="https://interviewquestions.tuteehub.com/tag/located-543617" style="font-weight:bold;" target="_blank" title="Click to know more about LOCATED">LOCATED</a> will be debited or credited to Suspense Account Which ultimately should <a href="https://interviewquestions.tuteehub.com/tag/become-389953" style="font-weight:bold;" target="_blank" title="Click to know more about BECOME">BECOME</a> <a href="https://interviewquestions.tuteehub.com/tag/nil-1118030" style="font-weight:bold;" target="_blank" title="Click to know more about NIL">NIL</a>.</body></html> | |
| 1422. |
If a transaction is properly analysed and recorded: |
| Answer» <html><body><p> Only two accounts will be used to <a href="https://interviewquestions.tuteehub.com/tag/record-1180336" style="font-weight:bold;" target="_blank" title="Click to know more about RECORD">RECORD</a> the transaction. <br/> One <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> will be used to record transaction. <br/>One account <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> will increase and another will decrease. <br/>Total amount debited will equals total amount credited. <br/></p>Solution :d</body></html> | |
| 1423. |
If a partner takes goods for personal use or goods are given as charity, why Input GST (CGST and SGST or IGST) Account is credited? |
| Answer» <html><body><p></p>Solution :It is <a href="https://interviewquestions.tuteehub.com/tag/credited-7316860" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITED">CREDITED</a> because at the time of purchase <a href="https://interviewquestions.tuteehub.com/tag/gst-13422" style="font-weight:bold;" target="_blank" title="Click to know more about GST">GST</a> Paid on these <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> was debited to Input GST (CGST and <a href="https://interviewquestions.tuteehub.com/tag/sgst-630622" style="font-weight:bold;" target="_blank" title="Click to know more about SGST">SGST</a> or <a href="https://interviewquestions.tuteehub.com/tag/igst-497558" style="font-weight:bold;" target="_blank" title="Click to know more about IGST">IGST</a>) Account. The goods are not sold but have reached their final destination, i.e., will not be sold further. Therefore, GST (CGST and SGST or IGST) is credited.</body></html> | |
| 1424. |
If a firm believes that some of its debtors may 'default'. It should act on this by making sure that all possible losses are recorded in the books. This is an example of the ………………….convention. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/prudence-1171261" style="font-weight:bold;" target="_blank" title="Click to know more about PRUDENCE">PRUDENCE</a></body></html> | |
| 1425. |
If a firm adopts different accounting principles in two accounting periods it conflicts with the concept of consistency. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a></body></html> | |
| 1426. |
If ₹920 is received from debtors of ₹1,000 in full settlement, Capital will be decreased by ₹ 80. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : <a href="https://interviewquestions.tuteehub.com/tag/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a></body></html> | |
| 1427. |
Identify the value involved in the assumption of going concern. |
| Answer» <html><body><p></p>Solution :(i) It is because of this concept that a distinction is made between <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> and revenue expenditure. <br/> (ii) It is because of this concept that <a href="https://interviewquestions.tuteehub.com/tag/full-1001178" style="font-weight:bold;" target="_blank" title="Click to know more about FULL">FULL</a> cost of an <a href="https://interviewquestions.tuteehub.com/tag/asset-885901" style="font-weight:bold;" target="_blank" title="Click to know more about ASSET">ASSET</a> is nottreated as an expense in the year of purchase itself and the cost is spread over the useful life of the asset by charging depreciation on a suitable basis. <br/> (iii) It is because of this concept that outside parties purchase shares and depentures of the <a href="https://interviewquestions.tuteehub.com/tag/enterprise-3569" style="font-weight:bold;" target="_blank" title="Click to know more about ENTERPRISE">ENTERPRISE</a>.</body></html> | |
| 1428. |
Identify the stakeholder group who would be most interested in the following : (i) The ethical or enviromental activities of the firm. (ii) Whether the firm has a long term future. (iii) The ability of the firm to carry on providing quality products. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :(i) Social responsibility group (such as <a href="https://interviewquestions.tuteehub.com/tag/environmental-1994" style="font-weight:bold;" target="_blank" title="Click to know more about ENVIRONMENTAL">ENVIRONMENTAL</a> <a href="https://interviewquestions.tuteehub.com/tag/protection-16062" style="font-weight:bold;" target="_blank" title="Click to know more about PROTECTION">PROTECTION</a> group). <br/> (ii) Potential investors and <a href="https://interviewquestions.tuteehub.com/tag/long-537592" style="font-weight:bold;" target="_blank" title="Click to know more about LONG">LONG</a> term creditors. <br/> (iii) Public or Customers.</body></html> | |
| 1429. |
Identified and measured economic events should be recorded in _______ order. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/chronological-408441" style="font-weight:bold;" target="_blank" title="Click to know more about CHRONOLOGICAL">CHRONOLOGICAL</a></body></html> | |
| 1430. |
IASB upon coming into existence has adopted |
| Answer» <html><body><p>all <a href="https://interviewquestions.tuteehub.com/tag/ias-23583" style="font-weight:bold;" target="_blank" title="Click to know more about IAS">IAS</a> and <a href="https://interviewquestions.tuteehub.com/tag/sic-643504" style="font-weight:bold;" target="_blank" title="Click to know more about SIC">SIC</a>.<br/>some IAS and SIC.<br/>noneof the IAS and SIC.<br/>None of these.</p>Solution :all IAS and SIC.</body></html> | |
| 1431. |
(i) The calibre or quality of the management team is not disclosed in the Balance Sheet. (ii) Advance received from a customer is not taken as income or sales. (iii) Assets are recorded in books at the cost incurred for acquisition of such assets.(iv) Revenue must be recognised when its is realised and expenses are recognised when incurred.(v) Abusiness for which financial statement are prepared is separate is separate and distinct from the owner of the entity.(vi) The assumption is made that the entity in question will remain in business for an indefinite period of time.(vii) Capital contributed by the proprietor is credited to his Capital Account.(viii) Financial statements of the firm are prepared every year on 31st March.(ix) Goods sold o credit to Ramesh - Ramesh 's A/c is debited and Sales A/c is credited.(x) Sales has been made in the year ended 31st March ,2018 but the amount has not been realised . Revenue should be recognised as earned in theyear ended 31st March,2018.(xi) Sale is recognised on the basis of Cash Memo or Invoice. (xii)Closing Stock is valued at lower of cost or market value. (xiii) Harpreet has entered into agreemant whereby he will earn Rs.10lakhs for the services to be provided in the next year . The income should be recognised as revenue in the next year after services have been provided. (xiv) Purchase of pen is treated as expense. |
| Answer» <html><body><p><br/></p>Solution :[(i) Money Measurement <a href="https://interviewquestions.tuteehub.com/tag/concept-928138" style="font-weight:bold;" target="_blank" title="Click to know more about CONCEPT">CONCEPT</a>; <br/> (ii) <a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> <a href="https://interviewquestions.tuteehub.com/tag/recognition-1180173" style="font-weight:bold;" target="_blank" title="Click to know more about RECOGNITION">RECOGNITION</a> Concept;<br/> (iii) Cost Concept;<br/> (iv) Accrual Concept ; <br/>(v) Business Entity Concept ; <br/>(vi) Going Concern Concept ; <br/>(vii) Business Entity Concept ;<br/> (viii) Accounting Period Concept ;<br/> (ix) Dual Aspect Concept ;<br/> (x) Revenue Recognition Concept ;<br/>(xi) <a href="https://interviewquestions.tuteehub.com/tag/verifiable-2323098" style="font-weight:bold;" target="_blank" title="Click to know more about VERIFIABLE">VERIFIABLE</a> Evidence <a href="https://interviewquestions.tuteehub.com/tag/objective-25531" style="font-weight:bold;" target="_blank" title="Click to know more about OBJECTIVE">OBJECTIVE</a> ;<br/> (xii) Prudence Concept ; <br/>(xiii) Revenue Recognition ; <br/> (xiv) Materiality Concept.]</body></html> | |
| 1432. |
(i) Rent Received,(ii) Bank Overdraft, (iii) Wages, (iv) Land and Building, (v) Commission Received, (vi) Commission Paid, (vii) Rent Outstanding, (viii) Cash in Hand, (ix) M/s. Gupta Traders (Supplier), (x) Drawings, (xi) Capital, (xii) Prepaid Rent, (xiii) Input IGST, (xiv) Output SGST. |
| Answer» <html><body><p><br/></p>Answer :[<a href="https://interviewquestions.tuteehub.com/tag/debit-945425" style="font-weight:bold;" target="_blank" title="Click to know more about DEBIT">DEBIT</a> Balance: (iii),(iv),(vi),(viii),(x),(xii),(<a href="https://interviewquestions.tuteehub.com/tag/xiii-1463648" style="font-weight:bold;" target="_blank" title="Click to know more about XIII">XIII</a>); <br/> Credit Balance: (i),(ii),(v),(<a href="https://interviewquestions.tuteehub.com/tag/vii-723638" style="font-weight:bold;" target="_blank" title="Click to know more about VII">VII</a>),(ix),(xi),(xiv).]</body></html> | |
| 1433. |
(i) Classify the followingas capital expenditure, revenue expediture and defered revenue expenditure for a cloth merchant? (a) Preliminary Expenses. (b) Purchase of Furniture. (c) Paymentof Salary (d) Expense paid for construction ofbuliding . |
| Answer» <html><body><p></p>Solution :(i)(a) Preliminay Expenses :<a href="https://interviewquestions.tuteehub.com/tag/deferred-946959" style="font-weight:bold;" target="_blank" title="Click to know more about DEFERRED">DEFERRED</a> <a href="https://interviewquestions.tuteehub.com/tag/revenueexpenditure-2249350" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUEEXPENDITURE">REVENUEEXPENDITURE</a> ,<br/>(<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>)<a href="https://interviewquestions.tuteehub.com/tag/purchase-1172709" style="font-weight:bold;" target="_blank" title="Click to know more about PURCHASE">PURCHASE</a> ofFurniture : CapitalExpenditure ,<br/>(c) PaymentofSalary : RevenueExpenditure , <br/> (d) Expenses paidfor ConstructionofBuilding: CapitalExpenditure.</body></html> | |
| 1434. |
Huge loss occurred due to the strike by employees. Will it be recorded ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :No. Because only those transactions and <a href="https://interviewquestions.tuteehub.com/tag/events-11766" style="font-weight:bold;" target="_blank" title="Click to know more about EVENTS">EVENTS</a> are recorded in <a href="https://interviewquestions.tuteehub.com/tag/accounting-637" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTING">ACCOUNTING</a> which are of a financial <a href="https://interviewquestions.tuteehub.com/tag/character-914164" style="font-weight:bold;" target="_blank" title="Click to know more about CHARACTER">CHARACTER</a> and the effect of which can be measured in terms of money.</body></html> | |
| 1435. |
How will direct payment by a customer affect the Pass Book balance ? |
| Answer» <html><body><p></p>Solution :A direct payment by a customerwill<br/> (i) increases the credit <a href="https://interviewquestions.tuteehub.com/tag/balances-891822" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCES">BALANCES</a> as per <a href="https://interviewquestions.tuteehub.com/tag/pass-1148402" style="font-weight:bold;" target="_blank" title="Click to know more about PASS">PASS</a> <a href="https://interviewquestions.tuteehub.com/tag/book-900767" style="font-weight:bold;" target="_blank" title="Click to know more about BOOK">BOOK</a>, or <a href="https://interviewquestions.tuteehub.com/tag/ltbr-2804405" style="font-weight:bold;" target="_blank" title="Click to know more about LTBR">LTBR</a> (ii) <a href="https://interviewquestions.tuteehub.com/tag/reduce-1181332" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCE">REDUCE</a> the debit balance as per Pass Book.</body></html> | |
| 1436. |
How many sides does an account have? |
| Answer» <html><body><p> <a href="https://interviewquestions.tuteehub.com/tag/two-714195" style="font-weight:bold;" target="_blank" title="Click to know more about TWO">TWO</a> <br/> Three<br/>one<br/> <a href="https://interviewquestions.tuteehub.com/tag/none-580659" style="font-weight:bold;" target="_blank" title="Click to know more about NONE">NONE</a> of These<br/></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/iv-501699" style="font-weight:bold;" target="_blank" title="Click to know more about IV">IV</a></body></html> | |
| 1437. |
How is Unearned Income shown in the Final Accounts ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Unearned Incomes is <a href="https://interviewquestions.tuteehub.com/tag/shown-1206565" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWN">SHOWN</a> in the <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> Sheet on the Liabilites side under the main head Current Liabilities.</body></html> | |
| 1438. |
How is Trade Discount recorded in the books of account? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/trade-711631" style="font-weight:bold;" target="_blank" title="Click to know more about TRADE">TRADE</a> Discount is recorded in <a href="https://interviewquestions.tuteehub.com/tag/thepurchases-3202462" style="font-weight:bold;" target="_blank" title="Click to know more about THEPURCHASES">THEPURCHASES</a> <a href="https://interviewquestions.tuteehub.com/tag/book-900767" style="font-weight:bold;" target="_blank" title="Click to know more about BOOK">BOOK</a> and Sales Book but is not recorded in the Ledger Accounts. In the Ledger, only net amount of purchases and sales are <a href="https://interviewquestions.tuteehub.com/tag/entered-2072095" style="font-weight:bold;" target="_blank" title="Click to know more about ENTERED">ENTERED</a>.</body></html> | |
| 1439. |
How is Returns Inward shown in the Trading Account |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/returns-1187977" style="font-weight:bold;" target="_blank" title="Click to know more about RETURNS">RETURNS</a> Inward is <a href="https://interviewquestions.tuteehub.com/tag/shown-1206565" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWN">SHOWN</a> on the credit side of the Trading Account by way of <a href="https://interviewquestions.tuteehub.com/tag/deduction-946295" style="font-weight:bold;" target="_blank" title="Click to know more about DEDUCTION">DEDUCTION</a> from <a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a></body></html> | |
| 1440. |
How is profit or loss of a particular period is ascertained? |
| Answer» <html><body><p></p>Solution :Profit or loss of a particular <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a> is <a href="https://interviewquestions.tuteehub.com/tag/ascertained-7317794" style="font-weight:bold;" target="_blank" title="Click to know more about ASCERTAINED">ASCERTAINED</a> by preparing a trading and profit or loss account.</body></html> | |
| 1441. |
How is Cash Discount recorded inthe books of account? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> Discount Allowed is an expense and is <a href="https://interviewquestions.tuteehub.com/tag/debited-2043748" style="font-weight:bold;" target="_blank" title="Click to know more about DEBITED">DEBITED</a> to Discount Allowed <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a>. It is closed by transferring it to the Profit and Loss Account. Similarly, Cash Discount Received is an <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> and is credited to Discount Received Account which is transferred to Profit and Loss Account.</body></html> | |
| 1442. |
How is accounting influenced byh personal judgements? |
| Answer» <html><body><p></p>Solution :Accountant has to exercise his personal judgement in <a href="https://interviewquestions.tuteehub.com/tag/respect-1186739" style="font-weight:bold;" target="_blank" title="Click to know more about RESPECT">RESPECT</a> of various items. For example, it is <a href="https://interviewquestions.tuteehub.com/tag/extremely-455606" style="font-weight:bold;" target="_blank" title="Click to know more about EXTREMELY">EXTREMELY</a> difficult to predict with any degree of accuracy the actual <a href="https://interviewquestions.tuteehub.com/tag/useful-1441152" style="font-weight:bold;" target="_blank" title="Click to know more about USEFUL">USEFUL</a> life of an asset which is needed for calculating <a href="https://interviewquestions.tuteehub.com/tag/depreciation-948712" style="font-weight:bold;" target="_blank" title="Click to know more about DEPRECIATION">DEPRECIATION</a>. The same is true about method of valuation of stock and making provision for doubtful <a href="https://interviewquestions.tuteehub.com/tag/debts-435567" style="font-weight:bold;" target="_blank" title="Click to know more about DEBTS">DEBTS</a>.</body></html> | |
| 1443. |
How does the matching concept apply to depreciation? |
| Answer» <html><body><p></p>Solution :According to matching concept, all costs which are incurred in an <a href="https://interviewquestions.tuteehub.com/tag/acccounting-2395011" style="font-weight:bold;" target="_blank" title="Click to know more about ACCCOUNTING">ACCCOUNTING</a> period should be charged against the revenue of that period. Hence <a href="https://interviewquestions.tuteehub.com/tag/depreciation-948712" style="font-weight:bold;" target="_blank" title="Click to know more about DEPRECIATION">DEPRECIATION</a> of current year is charged against the current years revenue. In other words, full cost of the asset is not treated as an expense in the year of its purchase itself <a href="https://interviewquestions.tuteehub.com/tag/rather-2973755" style="font-weight:bold;" target="_blank" title="Click to know more about RATHER">RATHER</a> it is spread over its <a href="https://interviewquestions.tuteehub.com/tag/useful-1441152" style="font-weight:bold;" target="_blank" title="Click to know more about USEFUL">USEFUL</a> life.</body></html> | |
| 1444. |
How does the Matching Principle apply to depreciation? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/according-366619" style="font-weight:bold;" target="_blank" title="Click to know more about ACCORDING">ACCORDING</a> to the Matching Principle , the expenses for an accounting period are <a href="https://interviewquestions.tuteehub.com/tag/matched-7297316" style="font-weight:bold;" target="_blank" title="Click to know more about MATCHED">MATCHED</a> against related revenues for the determination of profit . On <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> of thisprinciple the purchase price of the fixed <a href="https://interviewquestions.tuteehub.com/tag/asset-885901" style="font-weight:bold;" target="_blank" title="Click to know more about ASSET">ASSET</a> is not <a href="https://interviewquestions.tuteehub.com/tag/taken-659096" style="font-weight:bold;" target="_blank" title="Click to know more about TAKEN">TAKEN</a> but only depreciation on fixed asset related to the accounting period is taken.</body></html> | |
| 1445. |
How do we ascertain the financial position of the business? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :By <a href="https://interviewquestions.tuteehub.com/tag/preparing-2949211" style="font-weight:bold;" target="_blank" title="Click to know more about PREPARING">PREPARING</a> a <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> <a href="https://interviewquestions.tuteehub.com/tag/sheet-641829" style="font-weight:bold;" target="_blank" title="Click to know more about SHEET">SHEET</a>.</body></html> | |
| 1446. |
How can Opening Capital be ascertained from incomplete records? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Opening Capital can be ascertained by preparing a Statement of Affairs in the <a href="https://interviewquestions.tuteehub.com/tag/beginning-894536" style="font-weight:bold;" target="_blank" title="Click to know more about BEGINNING">BEGINNING</a> of the accounting period.</body></html> | |
| 1447. |
How can credit sales be determined from incomplete records? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :By preparing <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> Debtors Account, credit sales can be <a href="https://interviewquestions.tuteehub.com/tag/calculated-907694" style="font-weight:bold;" target="_blank" title="Click to know more about CALCULATED">CALCULATED</a>.</body></html> | |
| 1448. |
How can credit purchases be determined from incomplete records? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :By prepaing <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> <a href="https://interviewquestions.tuteehub.com/tag/creditors-938665" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITORS">CREDITORS</a> Account, credit purchases can be <a href="https://interviewquestions.tuteehub.com/tag/determined-949906" style="font-weight:bold;" target="_blank" title="Click to know more about DETERMINED">DETERMINED</a>.</body></html> | |
| 1449. |
Howare the followingitems dealt in Accounting Equation ? (i) Interest duebut notreceived ₹500. (ii)Rentreceivedin a dvance ₹1,000 (iii)Isurance premium paidin advance ₹1,500.(iv) Salaries due tonot paid ₹2,000. |
| Answer» <html><body><p></p>Solution :(i) Interest duebutnot recived shall be added to <a href="https://interviewquestions.tuteehub.com/tag/assest-2445834" style="font-weight:bold;" target="_blank" title="Click to know more about ASSEST">ASSEST</a> on one side and tothe capital on other side. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>)It willincreasecashonthe assetsside and increase the liabilities. <br/> (iii) It will decrease one assets ( <a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a>) and increase another assets (Prepaid insurance). <br/> (iv) Salary beingan expense will be deducted fromthe capitaland beingunpaid will be added to liabilities.</body></html> | |
| 1450. |
How can Closing Capital be ascertained from incomplete records? |
| Answer» <html><body><p></p>Solution :Closing Capital can be ascertained by <a href="https://interviewquestions.tuteehub.com/tag/preparing-2949211" style="font-weight:bold;" target="_blank" title="Click to know more about PREPARING">PREPARING</a> a Statement of <a href="https://interviewquestions.tuteehub.com/tag/affairs-851191" style="font-weight:bold;" target="_blank" title="Click to know more about AFFAIRS">AFFAIRS</a> at the <a href="https://interviewquestions.tuteehub.com/tag/end-971042" style="font-weight:bold;" target="_blank" title="Click to know more about END">END</a> of the accounting <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a>.</body></html> | |